Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2023 International Conference on Management Research and Economic Development
Series Vol. 22 , 13 September 2023
Open
Access | Article
Stock Price Prediction Using Stepwise Regression and Improved with Factor Analysis
* Author to whom correspondence should be addressed.
Abstract
Owing to volatility in stock markets, it is quite elusive to forecast stock prices. Albeit, sometimes regular patterns are manifested in stock prices and a variety of factors are proved to be competent to determine stock prices partly. Hence, using stepwise regression on historical stock price data, this paper proposes determining similar patterns in stock prices and exploring potential rules to select the main factors that can affect stock prices significantly while taking all factors into account. Difference analysis is also employed to probe possible correlations in the data. Eventually, this paper tries to improve stock price prediction using factor analysis and manages to achieve higher accuracy.
Keywords
stock price prediction, stepwise regression, comparison analysis, factor analysis
References
1. Fetter, F. A. (1907) The nature of capital and income. Journal of Political Economy, 15(3), 129-148.
2. Williams, J. B. (1938) The Theory of Investment Value. Harvard University Press, Cambridge, MA.
3. Gordon, M. J. (1959) Dividends, earnings, and stock prices. The review of economics and statistics, 99-105.
4. PRATT, S. (1903) The Work of Wall Street. D. Appleton, New York.
5. Graham, B., Dodd, D. L. F., Cottle, S., Murray, R. F., & Block, F. E. (1999) Security analysis. Hainan Publishing House.
6. Wang Zhaodong (2014) An empirical analysis of multi-factor stock selection model in Chinese stock market. (Doctoral dissertation, Shandong University).
7. Cao Zhengfeng, Ji Hong, & Xie Bangchang. (2014) The random forest algorithm is used to select high quality stocks. Journal of Capital University of Economics and Business, 16(02):21-27.
8. Shen Tao - Accounting for Logistics Enterprises - Lixin Accounting Press – 2005
9. Will Kenton (2022): https://www.investopedia.com/terms/c/cash-ratio.asp
10. Hua Wei Real estate finance Fudan University Press, 2004. Jan:76
11. Liao Hong Principles of Accounting first edition, Wuhan University Press·2002
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 2023 International Conference on Management Research and Economic Development
- ISBN (Print)
- 978-1-915371-87-4
- ISBN (Online)
- 978-1-915371-88-1
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/22/20230283
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited